Pension/Annuity Plans
A Pension Plan is a long-term investment product that helps you accumulate wealth during your working years and then convert it into a guaranteed monthly income (annuity) after retirement. It offers both wealth creation and income assurance.
An Annuity Plan, on the other hand, is typically purchased with a lump sum amount and provides regular income either immediately (Immediate Annuity) or after a deferment period (Deferred Annuity).
Key Features of Pension & Annuity Plans
- Guaranteed Monthly Income: Enjoy a steady stream of income throughout your retirement life.
- Build Retirement Corpus: Invest systematically and create a financial cushion.
- Flexible Options: Choose from immediate or deferred annuity based on your needs.
- Spouse Protection: Joint annuity options ensure income continues for your partner.
- Lifetime Security: Plans can be customized to offer income for life or fixed terms.
- Tax Advantages: Contributions may qualify for tax deductions under Section 80CCC of the Income Tax Act.
Who Should Invest in These Plans?
- Working professionals planning early for retirement
- Entrepreneurs looking to secure future income
- Individuals seeking stable returns post-retirement
- People who want financial independence in old age
